India: RBI ready to cut again – TDS

Analysts at TD Securities are expecting the Reserve Bank of India (RBI) to cut its repo rate by 25bp to 6.00% on 4 April and shift to an easing bias.

Key Quotes

“The move will be the second straight cut following 25bp easing at the RBI meeting on 7 February.”

“The MPC voted 4-2 to ease policy at the February meeting and we think that at least one more MPC member will vote for a cut at this meeting. A combination of softening activity, low inflation and declining external pressures in the wake of a more benign Fed rate path, all point to a cut. Indeed, growth appeared to play a bigger role in the RBI's policy determination. Going forward, we think the RBI will be largely data dependent.”